The Sylvester Family of Plainview, Minnesota*

Edwin Sylvester left detailed notes about alleged mortgage improprieties

November 13, 1925

PAGE 162

"One of the features of the entire Plainview State Bank affair," Senator Carley added, "was the remarkable records left by the missing president. Every transaction made was shown on the records and the work of untangling it has been made much easier on this account."
"His wrong doings," Carley continued, "were all along one line. Mortgages was his field and he kept strictly to his field. His whole misappropriation consisted of selling mortgages that were already paid to some investor which he knew and used this money for his own purposes and to meet other mortgage payments that he had previously sold. Some of those already paid mortgages he used as live assets in the bank." A certain percentage of the funds was taken from "Peter to pay Paul."
Many examples of the methods employed by Sylvester in his handling of the mortgages were related by Senator Carley.

Saw That Interest Was Paid
"He always saw that the interest was paid to the investor on his purchased mortgages, and make it clear to him that for the best interest of the bank," Carley narrated, "that the mortgagee should not know that the bank had resold his paper."
"There is one man, a former resident of Plainview, who had $41,000 worth of these mortgages," Carley added. "He used to come to Plainview each year and spent two weeks with Sylvester. They were great fishing pals. Before this man would return home, some night in the bank, Sylvester would show him a neatly typewritten sheet stating ‘here are your mortgages.’ Each item was carefully listed. The man took Sylvester’s word and after the closing of the bank his safety deposit box, which was supposed to contain these securities was opened. It contained only notations of the transactions. Not a mortgage was there. He had only a typewritten list of mortgages that had long ago been paid by the mortgagees. (NOTE: This may have been Pete Wood.)
Other examples Cited
Data backing each of these examples was produced from the voluminous records of the bank, which were brought to Winona, and from which then banking experts were to testify at the hearing.
The remarkable confidence that the people of Plainview and the surrounding territory had in Sylvester made this possible, according to Carley. It was a plain case, as Mrs. Sylvester stated on the witness stand at the Saturday hearing of "Confidence breeds carelessness."
Bank Situation Brighter
What percentage of recovery the depositors of the bank will receive cannot yet be determined, according to Senator Carley. The exact amount of the shortage is not yet even known, he revealed. This is due to many entangled mortgages the bank held or was handling. Sylvester’s plan of taking funds from "Peter to pay Paul," and visa-versa has left a cross-word puzzle that is going to take plenty of time to clear up.
"But I will say," Carley added, "that the whole situation today is much brighter than it was three months ago. Mr. Mikkelson, the receiver of the bank, has done some remarkable work during the past three months in collecting notes and straightening out mortgages and the depositors today stand in a much more favorable position than they have at any time since the doors of the bank closed. There are cases coming in court, the outcome of which will materially affect the bank, and many other tangled legal and banking affairs must be settled before anyone is in a position to state what percentage of recovery the depositors will received.
Raps Bankers Association
"Another remarkable thing about the Sylvester case," Senator Carley added, "and I believe it’s true of many others, is that the American Bankers Association and the Minnesota Bankers Association has done nothing to capture this fugitive, who worked from behind the counter of the bank robbing the people, but these same organizations

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* SOURCE: Manzow, Ron (compiler), "The Sylvester Family of Plainview, Minnesota - a collection of information taken from the Plainview News, other newspapers, letters, and diaries beginning in 1884": Plainview Area History Center, 40 4th St. S.W., Plainview, MN 55964. Compiled in 2001.

NOTE: from Ron Manzow, December 2001: "Feel free to reproduce the pages for anyone who wants a copy. It was compiled to be shared... All I ask is that they consider sending a check to the [Plainview Area] History Center to help us out. That should be enough."